The art of budgeting

User Generated

vhfmrhat

Business Finance

Description

Cite at least five (5) budgeting mistakes and their consequences.Write your answer on a yellow paper following the table below:

1 . BUGETING MISTAKES
2. CONSEQUENCES

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Explanation & Answer

Overstating projections

Ignoring immediate budgetary needs

Assuming existence of revenue is indicative of positive cash flow

Forgetting sales tax

Mismanaging the advertising timeline

Reference:

http://www.entrepreneur.com/article/49360

Consequences: 

Mismatch between cash inflow and cash outflow

Arranging finance at higher rate of interest



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